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How Does Age Affect The Price Of A Long-Term Care Policy?

Mar 20, 2008
As you grow old, some things like dinners out and movies become cheaper due to senior discounts. However, conversely other things become more expensive, and usually those things are insurance. As a result, when you are getting a long-term care policy, your age is going to have a big effect on the price of a long-term care policy.

Look at it from the insurance company's perspective. They have a 30-year-old computer programmer who works from home and rarely travels. As a result, he is considered low-risk and his insurance premium costs are going to be as low as $20 per month. However, for an individual who is 67 and has a heart condition, the costs become much greater because there is an increased risk that the individual will have to collect on the policy soon.

A 30-year-old can pay $20 per month for years and offset the cost of the long-term care expenses for the company very early on. This is not the case for the 67-year-old. The insurance company will need to collect as much money as they can before the individual needs long-term health care so they can offset the costs of his care.

As a result, age has a huge affect on the price of a long-term health care plan. The younger you are, the less you will pay, while the older you are the more you will pay. Hence the reason you should try and get the care you need at an early age so you can benefit from those low costs.

As you get older, you are in a greater risk area of suffering several debilitating health problems. The insurance companies look at this and they determine your eligibility for long-term care insurance programs as a result.

Do not be surprised if you end up paying over $100 more than someone 20 or 30 years younger than you. If you want to save money on your premiums, and not put more financial strain on yourself to make the payments each month, you are going to need to try and get yourself into a long-term care insurance plan early so that you have a low price for long-term care.

Conclusion It is an unfortunate reality of life that the closer you get to needing long-term care, the more you will pay on the price for long-term care insurance. Insurance companies will look at you in terms of risk, and if there is a greater risk they will be paying out sooner than later, they are going to attach higher monthly premium payments as a result. You have less time to pay towards your long-term care insurance policy, and as a result, they need to offset the potential costs of that plan by getting as much money before you need long-term care as they can.

As with anything to do with money and saving, starting earlier is always better than starting later. Long-term insurance plans are no different and early planning on your part, will mean an easier premium payment from the insurance company.

You should just ask for help from an insurance representative who specializes in long term care insurance to answer any questions.
About the Author
Before you go out and buy a policy go to Long Term Care Insurance Guide and read How Does Long Term Care Insurance Work?
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